TripAdvisor shares rose more than 8 percent in premarket trading Thursday after the travel company reported third-quarter earnings were boosted by its growing non-hotel business.
“We are on track to deliver strong profit growth in 2018, and we are well-positioned heading into 2019,” TripAdvisor CFO Ernst Teunissen said in a statement.
TripAdvisor’s stock soared as high as 12 percent in following its report after Wednesday’s close. TripAdvisor reported adjusted earnings of $0.72 a share, beating Wall Street estimates by 24 cents according to FactSet. The company’s earnings growth was driven by its non-hotel segment, which gained 20 percent year-over-year. TripAdvisor’s non-hotel business focuses on tours, restaurants and activities.
The company missed revenue expectations slightly, reporting $458 million for the third quarter as opposed to the $469.1 million analysts expected. TripAdvisor’s hotel segment declined 2 percent in year-over-year revenue.
TripAdvisor shares are up 68 percent this year as of Wednesday’s close of $58.07 a share.